DoD's Navy awards $11.6M for administrative support services to AVMAC LLC under full and open competition

Contract Overview

Contract Amount: $11,559,029 ($11.6M)

Contractor: Avmac LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE SUPPORT SERVICES INCLUDING RECEPTIONIST SERVICES, DOCUMENT PREPARATION AND HANDLING, FILING AND FILE RETRIEVAL, DUPLICATION, PROCESSING AND HANDLING OF UNCLASSIFIED AND CLASSIFIED MAIL, DATA MAINTENANCE, AND SCHEDULING AND TRACKING.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to AVMAC LLC for work described as: ADMINISTRATIVE SUPPORT SERVICES INCLUDING RECEPTIONIST SERVICES, DOCUMENT PREPARATION AND HANDLING, FILING AND FILE RETRIEVAL, DUPLICATION, PROCESSING AND HANDLING OF UNCLASSIFIED AND CLASSIFIED MAIL, DATA MAINTENANCE, AND SCHEDULING AND TRACKING. Key points: 1. The contract covers a broad range of administrative support, including mail handling and data maintenance. 2. AVMAC LLC, a small business, is the awardee. 3. The contract is a firm-fixed-price delivery order, indicating clear pricing expectations. 4. The award falls under Engineering Services (NAICS 541330), which may be a broad classification for administrative tasks.

Value Assessment

Rating: fair

The total award amount is $11.6 million over five years. Benchmarking is difficult without specific service details, but the average annual value is approximately $2.3 million.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. The use of a delivery order implies it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract, which can facilitate price discovery through multiple orders.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary administrative services.

Public Impact

Essential administrative functions will be supported, ensuring smooth operations within the Department of the Navy. The contract's duration of five years provides stability for service delivery and planning. The award to a small business, AVMAC LLC, supports small business utilization goals. The classification under Engineering Services (NAICS 541330) might warrant further scrutiny to ensure alignment with the actual services provided.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Warning Flags

NAICS code mismatch potential
Limited transparency on specific service deliverables

Positive Signals

Full and open competition
Firm-fixed-price contract type
Award to a small business

Sector Analysis

Administrative support services are crucial across all government sectors. The benchmark for such contracts varies widely based on scope and duration. This $11.6 million award over five years for comprehensive administrative support appears within a reasonable range for a large federal agency.

Small Business Impact

AVMAC LLC, identified as a small business, received this award. This aligns with federal initiatives to support small business participation in government contracting. Further analysis would be needed to confirm if AVMAC meets the size standards for the assigned NAICS code.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of the Navy is responsible for ensuring AVMAC LLC meets contractual obligations and performance standards throughout the contract period.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential NAICS code misclassification
Broad description of services lacks specificity
Reliance on contractor performance for critical administrative functions
Long contract duration may reduce flexibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to AVMAC LLC. ADMINISTRATIVE SUPPORT SERVICES INCLUDING RECEPTIONIST SERVICES, DOCUMENT PREPARATION AND HANDLING, FILING AND FILE RETRIEVAL, DUPLICATION, PROCESSING AND HANDLING OF UNCLASSIFIED AND CLASSIFIED MAIL, DATA MAINTENANCE, AND SCHEDULING AND TRACKING.

Who is the contractor on this award?

The obligated recipient is AVMAC LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the specific breakdown of services provided under this contract, and how does the NAICS code 'Engineering Services' accurately reflect these administrative functions?

The contract details administrative support including receptionist duties, document handling, mail processing, and data maintenance. The classification under NAICS 541330 (Engineering Services) appears unusual for these tasks. A review of the Statement of Work (SOW) is necessary to understand the rationale behind this classification and ensure it aligns with the actual services rendered, potentially indicating a broader scope or a misclassification.

Given the firm-fixed-price structure, what mechanisms are in place to ensure cost-effectiveness and prevent potential overpricing for administrative support services?

The firm-fixed-price (FFP) contract type establishes a ceiling price, incentivizing the contractor to perform efficiently. However, for administrative services, ensuring cost-effectiveness relies heavily on the initial price negotiation, clear performance metrics, and robust oversight by the Department of the Navy to monitor service delivery and prevent scope creep or unnecessary charges.

How does the performance of AVMAC LLC on this contract contribute to the overall effectiveness and efficiency of the Department of the Navy's administrative operations?

The effectiveness of AVMAC LLC's performance directly impacts the Navy's operational efficiency. Reliable administrative support ensures that essential functions like mail processing, scheduling, and record-keeping are handled promptly and accurately, freeing up military and civilian personnel to focus on core mission-critical activities. Consistent performance by AVMAC is key to maintaining these operational benefits.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660421R3012

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 409 INNOVATION DR, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,141,968

Exercised Options: $11,559,029

Current Obligation: $11,559,029

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $374,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7212

IDV Type: IDC

Timeline